The article describes current trends in the global financial market development as well as the formation of fundamentally new, innovative financial resources within the peering economy, such as cryptocurrencies. Its capitalization reached almost 1/100 of global gross domestic product. The purpose of the study is to analyze both the status of cryptocurrencies in different countries, including the United States of America, Japan, People’s Republic of China, and the European Union and the peculiarities of the cryptocurrency circulation development, as well as the money functions they are able to perform. The author has formulated the dilemma of this market regulation at the national and global levels. One should consider that the long-term role of crypto units depends upon the resolution of such a dilemma. And there is no unified approach of states and international organizations to the status and prospects of cryptocurrency regulation in our days. This creates a unique field of opportunities for further development of such instruments as the big economic and market movements undulate in big swings that were due to a sequence of actions and reactions by policymakers, investors, business owners, and workers. Given that state control over the emission of fiat money in the world can only be ensured to the extent that they control the banking system, the study provides an analysis of the legal status of such financial engineering products as cryptocurrencies. The author also accents on the three-tier blockchain technology. Finally, the domestic component is thoroughly analyzed, i.e. the regulation field of such instruments in Ukraine. The draft Concept of State Regulation of Cryptocurrency Transactions is also explained. Keywords: cryptocurrency; blockchain; status of crypto units; financial regulation; functions of money.
Blockchain originally emerged as the technological innovation that powered new
forms of digital currency like Bitcoin. However, recent years have seen leaders
in banking, finance, government, and many more organizations giving this new
innovation more attention than ever before. This reputation has been attributed
to its properties of allowing data to be shared across a large network of untrusted
entities without relying on a trusted third party. Blockchain provides advantage
for non-repudiation and integrity of secured data storage resulting in a more
transparent process. This paper critically analyzes whether a blockchain is ideally
the application technical solution for a specific scenario. Moreover, we compare
the differences between a 'permissionless' blockchain such as bitcoin, and a
'permissioned' blockchain such as hyperledger, commonly preferred by established
institutions like banks and compare their features with that of a centralized
database. We then provide a structured methodology to determine the efficient
solution to solve a specific application problem. With our methodology, we
explore three use cases payments, supply chain management, and decentralized
autonomous organizations and conclude this article with an outlook for further
opportunities.
Blockchain, the technology behind digital currency, is a decentralized, distributed ledger that records transactions in digital assets. By authenticating and recording immutable transactions, decentralized blockchains perform the same function as many intermediaries in our society that establish trust and maintain integrity between transacting parties. Due to its natural relation to accounting and possible uses in accounting functions, business operations, and financial services, it is important that accountants learn about blockchain technology and its opportunities and limitations. This chapter explores applications of blockchain technology in finance, auditing, financial reporting, and supply chain. We first discuss the classification, characteristics, and issuance of cryptoassets and the evolving regulatory environment. Then, we address potential innovative uses of blockchain in auditing and financial reporting, keeping in mind the limitations of its application. Finally, we explore how blockchain technology can enhance communication and trust between organizations in a supply chain or in contracting relationships.
Blockchain is a new generation technology that allows the central control mechanism or trusted authority to be removed, spreading the encrypted data across all participants in the network in a distributed database structure instead of central trust. The Smart Contract structure, which defines the rules and flow that allow the things we value to operate automatically as determined without the need for an external trigger mechanism, is the core element of this technology. Blockchain has gained popularity with its most famous application, Bitcoin. After Bitcoin became popular, it turned out that Blockchain might have new uses due to the advantage of technology such as security, brokerage, and transparency, and these areas are being investigated. Many big companies have started to invest in this technology in the face of the opportunities brought by Blockchain. HAVELSAN is a largescale software company that studies and adapts new generation technologies. Blockchain technology has become of the new generation technologies that HAVELSAN is interested in due to its impressive advantages. HAVELSAN has a wide range of activities, so the company can develop various Blockchain-based applications depending on these areas. Combining this diversity with the importance of the Smart Contract concept, which can be considered as the basis for most Blockchain applications, it is decided to create a strong Smart Contract framework before starting to build different applications with Blockchain technology. The creation of HAVELSAN Blockchain Smart Contract Framework; which infrastructures are used during the development phase, the problems encountered during development and the structure of the most suitable applications to be created with the framework to be developed will be explained in this article.
Smart contracts are protocols that can automatically execute a transaction including an electronic contract when a condition is satisfied without a trusted third party. In a representative use-case, a smart contract is executed when multiple parties fairly trade on a blockchain asset. On blockchain systems, a smart contract can be regarded as a system participant, responding to the information received, receiving and storing values, and sending information and values outwards. Also, a smart contract can temporarily keep assets, and always perform operations in accordance with prior rules. Many cryptocurrencies have implemented smart contracts. At POST2018, Atzei et al. give formulations of seven fair exchange protocols using smart contract on Bitcoin: oracle, escrow, intermediated payment, timed commitment, micropayment channels, fair lotteries, and contingent payment. However, they only give an informal discussion on security. In this paper, we verify the fairness of their seven protocols by using the formal verification tool ProVerif. As a result, we show that five protocols (the oracle, intermediated payment, timed commitment, micropayment channels and fair lotteries protocols) satisfy fairness, which were not proved formally. Also, we re-find known attacks to break fairness of two protocols (the escrow and contingent payment protocols). For the escrow protocol, we formalize the two-party scheme and the three-party scheme with an arbitrator, and show that the two-party scheme does not satisfy fairness as Atzei et al. showed. For the contingent payment protocol, we formalize the protocol with the non-interactive zero-knowledge proof (NIZK), and re-find the attack shown by Campanelli et al. at CCS 2017. Also, we show that a countermeasure with subversion NIZK against the attack works properly while it is not formally proved.
Smart contracts are increasingly popular in business and law. Smart contracts are also becoming increasingly complex. Advances in technology allow smart contracts to handle far more intricate transactions than the traditional—and simple— vending machine example. With increased complexity comes increased responsibility. When parties rely on an attorney to review or draft a smart contract, that attorney must understand what he or she is reading or writing. Smart contracts, however, are not written in a language most attorneys can understand, let alone write. While a general description of the contract may be translated into plain English, the contract itself is written in code. If an attorney cannot read the contract itself—and can only read a general description of the contract—can the attorney claim in good faith that he or she possesses the competence necessary to understand the terms of the contract? If the attorney cannot understand the contract, he or she can be held liable for malpractice if the contract leads to results contrary to what the attorney claimed could or would occur. The implementation of smart contracts is likely to give rise to specialized requirements for attorneys drafting and advising on smart contracts. Special requirements are not unheard of in the legal community. For example, to become a patent attorney, one must take and pass the Patent Bar Examination and fulfill other requirements, such as obtaining a bachelor’s degree in specified fields of science or engineering. Similar requirements—either in the form of a smart contract certification or exam—should be developed not only as a measure of attorney competence, but also as a protection against malpractice suits brought forth by clients.
Jan 1, 2020·Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)
The subject of this paper is the review of the feasibility and advisability of using smart contracts based on blockchain technologies for the legal regulation of relations to provide the exclusive rights to means of individualization (trademarks). Blockchain technology is one of the very promising fields in the area of digitalization of the economy, which continues to be constantly and actively developed. The use of selfexecutable transactions by subjects of civil (commercial) circulation is becoming increasingly relevant. However, it should be noted that law enforcement practice has yet to be formed in this area. The existing civil (commercial) law has recently begun to develop provisions defining the specifics of the circulation of so-called digital assets, which may also include exclusive rights and the results of intellectual activity, including trademark rights. So far, the existing legal regulation regarding the rights to digital assets (tokens) and the introduction of smart contracts into the circulation can hardly be called sufficient. The paper discusses the rationale for the feasibility and advisability of using smart contracts for registration of license agreements regarding the use of trademark rights. As a result of the study and practical proposal, the authors focus attention on the need for an internationally unified approach to using blockchain technologies for fixing the transfer (assignment) of exclusive rights to the results of intellectual activity.
R Naveenkumaran, S. Geetha, Kaushik Selvaraju, C Kishore · 5 authors
Crowdfunding is a method of online fundraising process that was initially developed for public members to make modest contributions to support the projects of creative individuals. Crowdfunding uses blockchain technology to offer smart contracts for users. This allows us to offer crowdfunding in a secure, transparent, and safe manner. The task of this work is to provide interactive forms for campaign development and financial contributions. Both campaign makers and donors may develop and support the campaigns by viewing or submitting requests for approval and fulfilling requests using this system. In addition, the donor may be able to see the progress of the funds they provide. All transactions will be recorded on the blockchain and stored as blocks. It is alluring to use smart contracts in blockchain. Without the aid of a trustworthy third party, a blockchain-based agreement must be negotiated, carried out, and enforced amongst unreliable participants. It is essential to develop executable code that runs on the blockchain. Blockchain was initially primarily used as the basis for cryptocurrencies, but in recent years, it has expanded to various industries. Blockchain is anticipated to be the most widely used technology as a green way to conduct internet transactions One application area for blockchain technology is crowdfunding websites. The biggest problem with today’s global crowdfunding market is that campaigns are no longer under strict control, and some crowd- investment efforts have proven fake. By utilizing Ethereum smart contracts on the crowdfunding site, this work aims to allay these worries by assuring that the initiatives may be added within the designated time limit, eliminating fraud, and allowing the contracts to be fully mechanically performed.
Smart contracts have the potential to improve many existing transactions and to enable entirely new business models. However, the technology supporting this new method of transacting is complex and the legal framework applying to it is somewhat unclear. Though theorised several decades ago, it was not until the advent of the distributed ledger technology known as blockchain that smart contracts were able to be practically implemented. This paper summarises the concept of smart contracts while providing the background and context of its development. It then distinguishes those smart contracts which are considered legally binding within the scope of US laws from those that may not have legal effect. Next, it provides an in-depth example of an exploitation of smart contracts and explores how the legal reaction to it is inadequate. To reduce the likelihood of future smart contract exploitations and to improve confidence for contracting parties, this article suggests adding explicit smart contract cybersecurity provisions to existing US legal frameworks. Specifically, I propose adapting several of the National Institute of Standards and Technology’s Federal Information Processing Standards to create minimum cybersecurity requirements for all legally binding smart contracts. I also examine the shortcomings of the Computer Fraud and Abuse Act while identifying it as a piece of legislation ripe for reform which, if done adequately, may provide a legal deterrent to would-be cyber hackers of smart contracts.
The study aims at understanding the current scenario of blockchain education and whether it is meeting the increasing demand of blockchain professionals in the job market. In addition, it also provided a comparison between Ethereum and Hyperledger and analyzed the one best suited for better academic curriculum design. By drawing from various sources of data, including journals, articles, reports, the study provided critical insights into the various aspects of a blockchain education. It assesses the existing curriculum on the blockchain that includes courses and programs from various renowned universities and business schools. The study reveals that although the courses are comprehensive in developing theoretical knowledge of the learner, it does not provide the scope for practical skill development. This gap reflects the skill-shortage of blockchain professionals in the job market. To address this, the research also provides some guidelines for developing a comprehensive pedagogical structure using Hyperledger technology. The discussion also highlights the benefits associated with Hyperledger and the way it can foster active learning among the learners. Finally, the researcher also provided the practical and theoretical implications of the study and assessed its limitations directing on the future course of research.
Xinwen Ni, Taojun Xie, Wolfgang Karl Härdle, Xiaorui Zuo
Abstract Cryptocurrency markets are highly sensitive to regulatory changes, often experiencing sharp price fluctuations in response to new policies and government interventions. Despite this, existing market indices fail to adequately capture the risks associated with regulatory uncertainty. In this paper, we introduce the Cryptocurrency Regulatory Risk Index (CRRIX), a machine learning-based index designed to quantify the impact of regulatory developments on cryptocurrency markets. Our methodology employs Latent Dirichlet Allocation (LDA) to classify policy-related news articles from major cryptocurrency news platforms, providing an objective measure of regulatory risk. We find that the CRRIX exhibits strong synchronicity with VCRIX, a cryptocurrency volatility index, suggesting that regulatory uncertainty plays a significant role in driving market fluctuations. Our results indicate that regulatory risk is a leading factor in market volatility, with major policy shifts triggering significant market movements. The proposed regulatory risk index provides a novel approach to quantifying policy uncertainty in the cryptocurrency sector, offering valuable insights for market participants navigating this rapidly changing environment.
espanolEl mercado de pagos evoluciona exponencialmente gracias a la incesante innovacion tecnologica y la popularizacion de tecnologias como la Distributed Ledger Technology (DLT). Su aplicabilidad va mas alla de las criptomonedas y tendra mayor impacto en los propios sistemas de pago. Sin embargo, el marco juridico europeo vigente todavia no da respuesta a todos los retos que plantean los nuevos servicios fintech. En este trabajo estudiamos posibilidades de aplicacion de la tecnologia DLT al mercado de pagos bajo el contexto normativo vigente, asi como sus potenciales efectos, desde el punto de vista juridico. EnglishPayments market is rapidly evolving due to the constant technological innovation and the popularization of new technologies as the Distributed Ledger Technology (DLT). Its applicability goes beyond cryptocurrencies and it will impact specially in payment systems. However, the European legal framework does not face every challenge posed by these new fintech services. In this paper, DLT possible applications in payments market are studied within the current legal framework, as well as their potential effects from a legal perspective.
Die Distributed-Ledger-Technologie (DLT) ist ein neues und sich schnell entwickelndes Gebiet. Ihre dezentralisierten und kryptographisch geschützten Strukturen ermöglichen die sichere Übertragung, Speicherung und Validierung von Daten ohne den Einsatz eines Intermediärs. Dies verleiht ihr ein transformatives Potenzial. Industrie und Regierungen haben seinen Wert erkannt, müssen jedoch die bestehenden Strukturen anpassen. Dazu gehört auch das traditionelle Zivilrecht. Die hier vorgestellte interdisziplinäre Forschung befasst sich mit einer spezifischen Reihe von Bemühungen in diesem Bereich. Sie untersucht Bestimmungen des ersten umfassenden zivilrechtlichen Rahmens für DLT-Systeme, des Gesetzes vom 3. Oktober 2019 über Token und VT-Dienstleister (Token- und VT-Dienstleister-Gesetz; TVTG) LGBl-Nr. 2019.301, LR-Nr.: 950.6. Dies geschieht sowohl aus rechtlicher als auch aus wirtschaftlicher Sicht, um ein umfassenderes Verständnis der Implikationen und Herausforderungen der Einführung des Zivilrechts in DLT-Systeme zu gewinnen. Der angewandte theoretische Rahmen ist der der Transaktionskostentheorie. Ziel dieser Bestimmungen ist es, einen rechtlichen Rahmen für DLT-Systeme zu schaffen, der eine zivilrechtliche Grundlage für Token, die Darstellung von Rechten in Token und die Übertragung dieser Token umfasst, Art. 1 Abs. 1 lit. a TVTG. Die Analyse zeigt, dass der Gesetzgeber eine umfassende Definition des Begriffs "Token" vorsieht, die die Inklusion einer grossen Vielfalt von Rechten wie Eigentumsrechte an materiellen Gegenständen, Gesellschaftsrechte, Wertrechte und mehr ermöglicht. Darüber hinaus gelingt es ihm, eine Disparität zwischen den Verfügungen über Rechte in der analogen und der digitalen Welt zu vermeiden, die, wenn sie nicht vermieden wird, zu erheblicher Rechtsunsicherheit führen würde. Dies hat auch ökonomische Auswirkungen. DLT-Systeme senken die Transaktionskosten, am offensichtlichsten durch den Ersatz von Intermediären durch verschlüsselte dezentrale Datenspeicherung und Konsensmechanismen. Das TVTG senkt Transaktionskosten, indem es die Zuordnung von Rechten zwischen der "realen" Welt und digitalen Systemen klärt und damit effiziente und zuverlässige Transaktionen ermöglicht, weleche rechtliches double spending vermeiden. Dies bildet eine wichtige Brücke zwischen dem traditionellen Zivilrecht und DLT-Systemen und fördert die volle Ausschöpfung des Potentials von DLT-Systemen, indem es Rechtssicherheit bietet. Die hier vorgestellte Forschung deckt nur einen kleinen Teil der Fragen ab, die sich im Zusammenhang mit der Anpassung etablierter Rechtssysteme an diese neue Technologie stellen. Der TVTG dient somit als Diskussionspunkt, der die nachfolgende Forschung und Gesetzgebung stark beeinflussen könnte.
The administration of lands in Ghana has been a major issue in the past years that has resulted in parties seeking arbitration to determine the rightful owners and others resulting in death because of the land-guard menace. The main issues in land administration in Ghana include modification and falsification of land records, difficulty in authenticating the ownership of land property, sales of land property to more than one customer, and lack of transparency in land transactions. This chapter examines the application of Blockchain in land administration in Ghana to solve the issues of unauthorized modification of land records, difficulties in proven ownership of land properties, and the lack of transparency in land transactions. The proposed solution is based on Ethereum Blockchain technology using a smart contract. The solution used a non-fungible token to represent land properties as a digital asset that can be traded on the proposed solution. The proposed solution provides integrity, immutability, provenance, and transparency in land administration.